In a Perfectly Competitive Industry,over the Long Run

question 100

Multiple Choice

In a perfectly competitive industry,over the long run,

• A) economic profits tend to persist.
• B) the number of firms in an industry grows.
• C) economic losses tend to persist.
• D) the number of firms in an industry shrinks.
• E) economic profits and losses are driven towards zero by entry and exit.

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Definitions:

Dependent Variable

The variable being tested and measured in a scientific experiment, which is expected to change under different conditions brought about by the independent variable.

Directed Thinking

Thinking aimed at a particular goal.

Analogical Representation

An idea that shares some of the actual characteristics of the object it represents.

Automaticity

The ability to do a task without paying attention to it.